Voice of the Free Press: UVM takes fundraising behind closed doors

Jul. 8, 2011

The University of Vermont has chosen to take its fundraising behind closed doors by transferring functions of its Office of Development and Alumni Relations to a private foundation, staffed by the same people who now do the work as UVM employees.

As a public university that receives taxpayer money, UVM is subject to many of the same open government obligations as any branch of state government. The move frees the university from an obligation to report publicly who gave money and how much. The university also accomplishes what it failed to achieve in the Legislature in 2010, when efforts to win a public records exemption for the names of donors died in the Senate.

UVM's move is entirely legal, yet shows university leaders learned nothing about the need for public oversight from their failed fight to pass legislation that would grant anonymity to those who donate money to the school.

The concern was that lack of anonymity was hindering UVM's ability to land the wealthiest donors capable of making large gifts. One way to read this message is that UVM believes the rich deserve special privileges in exchange for money, even at a public institution.

UVM would need to record a significant increase in fundraising -- especially large donations from wealthy individuals -- to back up their flawed argument.

UVM is hardly alone in creating private foundations for fundraising. Many public universities are choosing to split off their fundraising operations into private foundations so they can raise money free from the kind of public scrutiny that a taxpayer-funded entity would receive.

In many ways, this trend mirrors what's happening with campaign finance laws. In a string of decisions, the U.S. Supreme Court has steadily eliminated disclosure requirements on who gives money to politicians or restrictions on how much.

If donating money is an exercise in free speech, then using that money is also an exercise in power and influence. When it comes to our taxpayer-funded colleges and universities, there's a significant public interest in knowing who has the power to influence what is taught and what research is carried out on campus.

The move by UVM to shield the university's fundraising from public scrutiny removes a key instrument for the public to check if there is at least a correlation between the interest of big donors and what goes on at the university.

The UVM Foundation will go into full operation Jan. 1, effectively replacing the university's development office, which will shut down. Freed from many legal obligations to disclose donors, how transparent will UVM be about its fundraising?

After Jan. 1, transparency in UVM fundraising will no longer be a right of Vermonters, but at the discretion of the foundation.